Electric Vehicles (EV) Novated Lease

It’s never been a better time to lease an EV. Get rewarded for making the switch to EV novated leasing and pay no Fringe Benefits Tax with The Federal Government’s Electric Car Discount policy.¹

Quickly calculate how much you could save

Salary packaging your EV and its running cost with pre-tax salary.¹ Get an estimate in 30 seconds and see how much you'll save!

Get an estimate
Enjoy tax savings and lower running costs2
Pay no GST on the purchase price of an EV
Flexible lease terms and repayments from 1-5 years

What is an electric vehicle (EV) novated lease?


A novated lease is one of the easiest and most cost-effective ways to buy and run a car. Novated leasing is an agreement with your employer where they pay for your EV lease and car running costs out of your salary package pre-tax salary deductions.

With the introduction of the Electric Car Discount, eligible EVs purchased through a novated lease are fully exempt from Fringe Benefits Tax. This means now is a great time to novated lease an EV to enjoy great savings.

Our novated leasing can be used for both plug-in hybrid electric vehicles and 100% battery electric vehicles.

Is using novated leasing for an EV cheaper than a car loan or cash?

Yes! By not using your savings or taking out a car loan, you could save thousands on an electric vehicle over the life of the lease.3 By making the switch from a petrol or diesel vehicle to an electric car you can also enjoy potential savings on fuel and maintenance costs. View the infographic below, to learn more about how novated leasing compares to other forms of finance.
tesla model 3

What are the benefits of leasing electric cars?

Pay less income tax due to salary deductions reducing your pre-tax income
Enjoy flexible terms – for example, you can use your repayments to cover car expenses and car running costs
At the end of your lease, you can easily upgrade to a new vehicle and enjoy cutting-edge features as they hit the Australian market

How is an EV lease calculated?

Our Smartleasing Novated Lease Calculator is designed to estimate your lease payments as well as how much you could save by leasing an electric car.

Your potential lease payments and savings based on:
  • Vehicle purchase price
  • Taxable income
  • Average kilometres travelled each year
  • Proposed lease term
  • Comprehensive insurance figure
Get a quick estimate with the Smartleasing Calculator.


How our EV lease works

A novated lease for an EV works just the same as a lease on a petrol-powered vehicle, with the possibility of even more tax savings.

1. Choose an electric car

First, choose an electric car for your novated lease. Because you’ll save on running costs, a novated lease could even help you afford a higher value model.

Looking for a Tesla model or an MG ZS EV? Browse our range of fuel efficient vehicles from a variety of car manufacturers.

2. Get in touch with our team

Once you use our calculator to get your estimated quote, simply submit an enquiry form and our friendly team will reach out with a quote tailored to your own personal circumstances.

From here, we can guide you through every step of the application process. Our team will help you and your employer complete the necessary electric car lease documents to get you on the road quicker. 

As Australia’s leading novated lease company, Smartleasing also offers a wide range of bonus benefits to support your novated lease arrangement.

These include the:

When you choose Smartsalary for your electric car lease, you can also enjoy added benefits such as:

  • Access to over 740 dealerships to source any eligible EV
  • Retail sale negotiation services
  • Coverage for your insurance, roadside assistance and electricity costs
  • Leasing arrangements specific to your financial situation

Want to sell your car and get an EV? No problem!


We can help sell your car! With our Vehicle Disposal Program, we do all the legwork to ensure a smooth transition into your new car.

Electric vehicle leasing FAQs

You’ll be eligible for a novated lease if you’re a permanent employee and your employer offers novated leasing and salary sacrifice employment arrangements.

If you're already a Smartleasing member, you can log in to your account to check if your employer offers novated leasing.

For more information on eligibility criteria, feel free to contact our team.

In most cases, a novated lease can be a lot cheaper than purchasing an electric car outright or taking out a car loan.

Savings in action

There are 2 main types of electric cars. You can novated lease any of them:

1. Plug-In Hybrid Electric Vehicles
2. Battery Electric Vehicles

Yes! The Federal Government’s Electric Vehicle Discount Policy applies to all eligible new electric cars purchased after 1 July 2022 and used electric vehicles first registered after 1 July 2022.

With the discount, eligible EVs are exempt from the Fringe Benefits Tax, so you can salary package the finance and running costs out of your pre-tax salary.1

While your EV will need to be below the luxury car tax threshold ($89,332 in 2023-24 Financial Year), the electric car discount can be applied to the following EVs purchased through a novated lease: arrangement.

1. battery electric vehicles; and
2. plug-in hybrid electric vehicles (available to start up to April 1st 2025, with exemptions applicable for existing leases until they expire).

The most common expenses that can be claimed include; electricity, servicing, tyres, registration, CTP, comprehensive insurance, car washes, roadside assistance and charging stations. For home charging stations, you will need to be able to show the breakdown between the EV charging costs and your normal household electricity costs (e.g. through the use of a Smart Meter or separate fitted electricity supply). For mobile or public charging you have the option to use a Chargefox RFID card. If you have paid for the charging from your own funds, you can submit a claim for reimbursement via the Smartleasing app.

Charging cords or cables may be included as standard or they will need to be purchased from the manufacturer at the time of purchase to be considered a vehicle accessory and included in the base cost of the vehicle. This does not include wall chargers or installation. You cannot claim the purchase of a wall charger and installation as an exempt vehicle running expense as part of a novated lease. The replacement of a charging cord can be claimed if it is a like for like replacement and not an upgrade in charging technology.

Disclaimers

1. The Electric Car Discount is a Federal Government policy introduced to help reduce the cost of purchasing an EV to assist more Australians to get into an EV.
It involves two key discounts – the first removes the 5% import tax from applicable EVs, although it is important to note that lots of EVs are already exempt from this tax as they are imported from countries that Australia has a Fair Trade Agreement with. The second and most exciting change is to make EVs purchased through a novated lease fully exempt from Fringe Benefits Tax.

2. The most common expenses you can claim include running costs such as electricity, servicing, tyres, registration, CTP, comprehensive insurance, car washes, roadside assistance and charging stations.

3. Residual value, also referred to as a “balloon payment”, is the payment required by the Australian Taxation Office at the end of a novated lease term. The vehicle may be sold or re-leased to payout the residual value at the end of the lease term.

** Total cost over life, where life represents 5 years. Novated lease calculations: use Net GST processing method and Employee Contribution Method for FBT purposes; the total cost over life reflects the net effect after tax and includes an average Smartleasing admin fee; the Smartleasing buying power discount varies by vehicle and is subject to change. All calculations based on the following assumptions: (1) living in NSW 2000, (2) salary: $100,000 gross p.a., (3) travelling 15,000 kms p.a., (4) lease term: 60 months. Figures quoted include budgets for finance, fuel, servicing, tyres, maintenance, Vero by Suncorp comprehensive motor insurance and re-registrations and is subject to change; residual value is $16,994 including GST at the end of the lease term (the vehicle can be sold or re-leased to payout the residual at end of the lease term). Interest rate quoted for novated lease is 10.46% p.a. vs 10.11% p.a. for car loan. Vehicle pricing and finance rates are correct as of July 2023 and may be subject to change.